Wage growth still muted in latest report on median earnings

The Labor Department on Thursday released its latest report on median wages, and the short version is, there’s not much growth to report.

On a year-over-year basis, median earnings were up just 0.8% in the second quarter, to $780 per week. That’s short of the level needed to compensate for inflation, and that weakness will make Federal Reserve Chairwoman Janet Yellen and her colleagues reluctant to lift interest rates.

The median wage data is a bit different than the weekly earnings data that comes out of the Labor Department’s payrolls report. That one is the average earnings, and what’s likely happening is the growth for top earners is pulling that series up more. Average earnings are up 2.1% year-on-year. (Average earnings also are seasonally adjusted, though a seasonally adjusted version of median wages also shows 0.8% growth.)

The report released Thursday also showed that women earned 83.5% of what men did. For men, those aged 55 to 64 ($1,012 per week) and those between 45 and 54 ($1,009) made the most. For women, those aged 45 to 54 ($783) led the way, with not much difference between those aged 55 to 64 ($770) and those between 35 to 44 ($769).

Management, professional and related occupations had the highest wage, at $1,200, and those in farming, fishing and forestry had the lowest, at $454.